Social Security for Company Owners and Managers in Bulgaria (2026)
If you own and run a Bulgarian company, you generally have two ways to be socially insured: as a self-insured person (in Bulgarian, самоосигуряващо се лице, or СОЛ) or under a management and control contract (договор за управление и контрол, or ДУК). The choice changes your monthly cost, your social rights, and how the tax authority treats the money you take out. Here is how it works in 2026, including the points that matter for non-residents.
Current as of July 2026 — verify changes. Bulgaria joined the eurozone on 1 January 2026 (€1 = 1.95583 BGN), so amounts are in euro. The 2026 social-security parameters are provisional until the annual State Social Insurance Budget Act is finalised — confirm current figures with the NRA. General information, not tax or legal advice.
Two regimes at a glance
Being insured is not optional — the question is on what basis:
- Self-insured (СОЛ): you are insured as an owner who performs personal work in the company, without an employment contract or a management contract. You choose your insurable income between a floor and a cap and pay the contributions yourself.
- Management contract (ДУК): you sign a written contract to manage the company for remuneration. You are then insured like an employee — on the agreed remuneration, but not below the statutory minimum for the position.
This matters even if you never physically live in Bulgaria: an owner who actively manages the company is expected to be insured on one of these bases.
When you are self-insured (СОЛ)
This is the typical case for the sole owner-manager of an EOOD who runs the business personally, without a management contract. As a self-insured person in 2026:
- you choose an insurable income between €550.66 (BGN 1,077) and €2,111.64 (BGN 4,130) per month;
- the rate is 27.8% (minimum package: pension fund + supplementary mandatory pension + health insurance) or 31.3% if you voluntarily also insure for general illness and maternity;
- you are not insured for unemployment;
- at year-end you reconcile your insurable income against your actual business income.
Worked example. A sole owner-manager insured at the floor of €550.66, without the maternity option: €550.66 × 27.8% ≈ €153.08 per month. On top of that, business income is taxed at the flat 10% personal income tax after deductible contributions.
When you are on a management contract (ДУК)
If you sign a management contract with remuneration, you are insured under the rules for employed persons. In that case:
- the insurable income is the agreed remuneration, but not below the statutory minimum for the position and not above the cap of €2,111.64;
- you are insured for all social risks, including maternity and unemployment — broader coverage than a self-insured person;
- contributions are split between the company and you (the employer part is borne by the company);
- tax and contributions are withheld and paid monthly, as with a salary.
A management contract is not an employment contract — it is governed by the Commerce Act, not the Labour Code, so it does not carry Labour-Code paid leave, working-time rules, and so on. But for tax and social-security purposes the remuneration is treated as employment income.
Worked example. A manager on a €1,500 monthly management contract: the personal share of contributions is roughly €1,500 × 13.78% ≈ €206.70, the company share is roughly €1,500 × 19% ≈ €285, and personal income tax is 10% on the remuneration after the personal contributions (≈ €129).
Side by side
| Parameter | Self-insured (СОЛ) | Management contract (ДУК) |
|---|---|---|
| Basis | owner’s personal work | contract to manage for remuneration |
| Insurable income | you choose (€550.66 – €2,111.64) | the remuneration, but ≥ the minimum for the position |
| Rate | 27.8% / 31.3% (with maternity) | full package incl. maternity and unemployment |
| Unemployment cover | no | yes |
| Who pays | the person | split company / person |
| Year-end reconciliation | yes | no |
| Personal income tax | 10% | 10% |
What this means for non-residents
- You do not need to live in Bulgaria to own and manage a company, but active management usually creates an obligation to be insured here. Whether contributions are actually due in Bulgaria can also depend on EU social-security coordination rules (A1 certificates) if you are insured in another EU/EEA state — get this checked before you assume nothing is due.
- Salary vs dividends. A management contract gives you a clean, monthly “white” income you can draw, rather than waiting to distribute profit. Dividends are separately subject to the 5% dividend tax on top of the 10% corporate tax — see the corporate tax guide.
- Getting the basis wrong is a common error. Taking money out as an owner without any insurance basis, or setting a management remuneration below the statutory minimum, are classic triggers for a correction by the NRA.
Insurance on multiple bases
Owners rarely have only one source of insurable income. If you are simultaneously employed somewhere, self-insured on another activity, and/or a manager under a contract, the rules for insurance on multiple bases apply:
- contributions are due on each basis, but the combined insurable income is capped at €2,111.64 per month;
- the cap is filled in a set order (income from employment first, then a management contract, then self-insured income last);
- at year-end you reconcile and either recover overpaid amounts or top up a shortfall.
In practice: if you are already insured up to the cap on a salary elsewhere (including in another country under EU coordination rules), your additional insurance as an owner may be minimal or health-only — but this must be calculated, not assumed.
Coordination if you are insured abroad
For non-residents this is the point that saves — or costs — the most money. Under EU/EEA social-security coordination, you are generally insured in one state at a time. If you already contribute in another member state and hold a valid A1 certificate, Bulgarian contributions on the same activity may not be due. But an A1 is not automatic — it is issued by the competent institution based on where you actually work and live, and cross-border management can create genuinely ambiguous cases. Do not assume; document your position before you set up payroll.
Total cost: a combined view
To see the real weight, combine the taxes. Suppose your company earns €100,000 of taxable profit and you take part of it as a €1,500 monthly management salary and the rest as dividends:
- corporate tax: 10% on taxable profit;
- your salary: insured and taxed at 10% personal income tax monthly, with the company bearing its ~19% employer contribution share;
- dividends: taxed at 5% on the distributed remainder.
The management salary is a deductible expense for the company and gives you social cover; dividends are cheaper in tax terms but carry no insurance. Most owner-managers use a mix — the right balance depends on how much cover you want and how much you draw monthly.
How to choose
- Want the lowest monthly cost and a small or early-stage business? Self-insured at the floor is often rational.
- Want full social rights (sickness, maternity, unemployment) and a stable monthly income you can draw? A management contract fits better.
- Either way, the insurance regime is part of the total cost of running the company — factor it in when you plan your company formation and pricing.
FAQ
Can I be self-insured and on a management contract at the same time? For the same company you choose one basis. You may be insured on multiple bases across different roles, subject to the maximum insurable income of €2,111.64.
Which minimum applies to a manager on a contract? The minimum insurable income for the relevant position and economic activity for the year. If the agreed remuneration is higher, you are insured on the higher amount.
Is the tax rate different? No — both regimes are taxed at the flat 10% personal income tax. What differs is the timing and mechanism of withholding.
Choosing between self-insurance and a management contract affects your contributions, taxes, and social rights for years. We handle accounting and payroll for Bulgarian companies — we set up the right regime, file the declarations, and track the thresholds. See our pricing.